This Risk-Taking Corporate Bond Fund Is on Our Radar
Western Asset Corporate Bond takes on significant credit risk, but it has performed relatively well during markets that do and don't favor that approach.
Greg Carlson: A fund that's on our radar right now is Western Asset Corporate Bond. This fund struggled during 2008's financial crisis as some of its higher-risk holdings were hit hard. However, it's under different leadership now.
Ryan Brist took over the fund in early 2010. He still takes on significant credit risk even relative to the fund's typical peer. The fund can invest up to 20% of its assets in high-yield debt, and Brist is fond of bonds that ride the line between investment-grade and high-yield. However, he has managed to navigate the fund successfully through both positive and negative environments for credit risk. The fund's record is strong during the whole of its tenure.
Greg Carlson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.